Mauritius: Domestic Corporate Taxation
Income Tax Rates
The rate of corporate income tax in Mauritius is currently 15% on chargeable income. See Offshore Legal and Tax Regimes for details of lower rates applying to Global Business Companies Category 1 and Category 2 companies.
Deputy Prime Minister and Finance Minister Rama Sithanen unveiled an interim budget in May 2009, containing a fivefold Action Plan for the next eighteen months, designed to combat the effects of the global economic crisis.
Building on the measures contained in the Additional Stimulus Package announced in December 2008, the Budget served to underline the importance of solidarity in overcoming the financial downturn. Therefore, a series of new levies was imposed on targeted affluent sectors intended to mobilise additional resources, vital to achieving the plan’s objectives.
The government introduced the following new taxes:
- A solidarity levy on the providers of fixed and mobile telephone services to be payable until the end of December 2012. A levy of 5% of profits and 1.5% of turnover applies to all profitable companies. In the 2013 budget, the solidarity level imposed on telephone service provider was extended through the 2013 tax year.
- The special levy on profitable banks increased to 1% of turnover, plus 3.4% of profits over the course of the next two financial years. This did not reduce to 1.7% on book profit and 0.5% on operating income from 1 January 2013, instead the 2013 budge extended this rate for a further two years.
- Profitable firms are required either to spend 2% of their profits on government-approved Corporate Social Responsibility schemes, or to transfer these funds directly to the government to be used in the fight against poverty.